Cameron, T. A. (1992) “Combining Contingent Valuation and Travel Cost Data for the Valuation of Nonmarket Goods,” Land Economics, 68 (3), 302-17.
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Carson, R. T. (2000). “Contingent valuation: A user's guide.” Environmental Science & Technology 34(8): 1413-1418.
Contingent valuation (CV) is a survey-based method frequently used for placing monetary values on environmental goods and services not bought and sold in the marketplace. CV is usually the only feasible method for including passive-use considerations in an economic analysis, a practice that has engendered considerable controversy. The issue of what a CV study tries to value is first addressed from the perspective of a policy-maker, and then the controversy over the inclusion of passive-use is taken up in more detail. The major issues and positions taken in the technical debate over the use of CV are summarized from a user's perspective. Key design and implementation issues involved in undertaking a CV survey are examined, and the reader is provided with a set of factors to examine in assessing the quality of a CV study.
Eiswerth, M. E., J. Englin, et al. (2000). “The value of water levels in water-based recreation: A pooled revealed preference/contingent behavior model.” Water Resources Research 36(4): 1079-1086.
In this paper we present estimated recreation values for preventing a decline in water levels at, and even the total loss of, a large western lake that is drying up. We use a Poisson version of the count data travel cost model; however, in addition to and in combination with revealed preference (RP) data, we employ contingent behavior (CB) responses to hypothetical questions on alternative water levels and number of trips. The pooled model used allows for tests of differences between results using RP and CB data. This particular pooled RP/CB approach has not to our knowledge previously been applied to examine the values of alternative water quantities in water- based recreation.
Hubbell, B. J., M. C. Marra, et al. (2000). “Estimating the demand for a new technology: Bt cotton and insecticide policies.” American Journal of Agricultural Economics 82(1): 118-132.
This article examines the potential demand for Bt cotton in the Southeast from information gathered in the first year of commercialization. We combine revealed preference (RP) data on adoption of Bt cotton varieties with stated preference (SP) data on willingness to adopt to estimate demand using a double- bounded maximum likelihood procedure. Using estimated demand equations, we simulate the costs of reducing conventional insecticide applications through subsidization of Bt cotton Results indicate that reducing cotton insecticide applications by 40% in die Southeast would require a $21/acre subsidy, with total annual program costs between $53 million and $60 million.
Cunha-e-Sa, M. A. and M. M. Ducla-Soares (1999). “Specification tests for mixed demand systems with an emphasis on combining contingent valuation and revealed data.” Journal of Environmental Economics and Management 38(2): 215-233.
In a world characterized by r unrationed goods (i.e., market goods) and (n - r) rationed goods, such as most environmental goods, necessary and sufficient conditions for the existence of an underlying rational preference structure are derived based on a system of mixed demand functions with complete information. With incomplete information, the case of a partial demand system is addressed, and a test for separability is proposed. The implications for testing rationality in a world characterized by combined (RP and SP) individual data are examined for data consistency. Testable conditions are derived. (C) 1999 Academic Press.
Rosenberger, R. S. and J. B. Loomis (1999). “The value of ranch open space to tourists: Combining observed and contingent behavior data.” Growth and Change 30(3): 366-383.
Several empirical studies have estimated the value of agricultural land as open space to local residents. An important group of individuals that may be affected by the loss of agricultural land are visitors to a region. The value of ranchland to tourists visiting a resort town in the Rocky Mountains is estimated through a travel cost model that combines information on observed behavior data from actual trips with contingent behavior data on intended current visitation if the resource were converted to urban and resort uses. The value of ranch open space to tourists is the gain or loss in consumer surplus derived from a visit to the study area attributable to the resource. A random effects Poisson regression model is estimated because of the panel nature of the data, accounting for the correlation of the multiple responses from heterogeneous individuals. Twenty-five percent of the sample would reduce visitation and 23 percent of the sample would increase visitation if ranch open space were converted to urban and resort uses. The overall effect of converting ranch open space to resort and urban uses is no net change in average consumer surplus per trip for summer tourists in general.
Nestor, D. V. (1998) “Policy evaluation with combined actual and contingent response data,” American Journal of Agricultural Economics, 80 (2), 264-276.
The City of Marietta, Georgia, experimentally switched from flat fee financing to volume-based pricing for its trash services in January 1994. Both before and during the experiment, detailed data on individuals' observed responses to the actual introduction and contingent behavioral responses to a hypothetical introduction of volume-based pricing were collected. This study applies these data, and investigates the methodology of collecting contingent behavior data and their use in policy analysis. In particular, this study empirically evaluates the effect of experience with the policy on responses to contingent behavior questions, and tests for potential bias in the contingent behavior data.
Huang, J. C., and V. K. Smith (1998) “Monte Carlo benchmarks for discrete response valuation methods,” Land Economics, 74 (2), 186-202.
This paper argues that the belief that discrete contingent valuation (CV) questions yield substantially larger estimates of the mean (and the median) willingness to pay (WTP) for nonmarket resources in comparison to open-ended CV questions is unfounded Monte Carlo experiments estimate the factors influencing the performance of WTP estimates based on discrete response models. Most of the en.or arises from the specification errors common to the empirical models in the literature. These experiments suggest models where WTP is dominated by nonuse (or passive use) values are likely to have smaller errors than where large use values influence these decisions.
Whitehead, J. C., et al. (1998) “Construct validity of dichotomous and polychotomous choice contingent valuation questions,” Environmental & Resource Economics, 11 (1), 107-116.
In this note we conduct construct validity tests for dichotomous choice (DC) and polychotomous choice (PC) contingent valuation questions. Contrary to previous results, we find that DC and PC estimates of willingness to pay are theoretically valid, convergent valid, and similar in terms of statistical precision. Similar to previous results, PC respondents are less sensitive to information than DC respondents. We conclude that DC and PC valuation questions are construct valid for this study. Sequential PC valuation questions could be used in studies where obtaining information about the certainty or intensity of respondent preferences would be useful.
Randall, A. (1998) “Beyond the crucial experiment: mapping the performance characteristics of contingent valuation,” Resource and Energy Economics, 20 (2), 197-206.
Through the 1970s and 1980s, contingent valuation (CV) research progressed steadily: applications increased in number and breadth, results gained a degree of credibility, and welfare evaluations from discrete choice data permitted widespread use of policy referendum formats. Following the Exxon Valdez damage assessments, vigorous challenges to CV were mobilized. Instead of the present preoccupation with standardizing CV methods and constructing Popperian tests of CV generically, a broad-based research program is recommended, including proliferation of methods, mapping the performance characteristics of CV, and combining contingent and observed choice data. (C) 1998 Elsevier Science B.V.
Poe, G. L. (1998) “Valuation of groundwater quality using a contingent valuation- damage function approach,” Water Resources Research, 34 (12), 3627-3633.
Using contingent valuation, this paper estimates a damage function for nitrate (NO3-N) exposures based on actual water test results of individual wells. Damages, as measured by willingness to pay for protecting individual well supplies within a 10 mg/L NO3-N health standard, are estimated to be a concave function of nitrate exposure levels, rising rapidly at low to moderate exposures and then leveling off. It is argued that future groundwater contingent valuation research should be based on objective data such as nitrate levels and census demographics in order to provide more useful information for groundwater managers and policy makers.
Mansfield, C. (1998) “A consistent method for calibrating contingent value survey data,” Southern Economic Journal, 64 (3), 665-681.
This paper outlines a statistical method for calibrating contingent value survey data derived from the assumption that individuals make constrained utility maximizing decisions. The method proposed allows us to determine the influence of respondent characteristics on bias, as distinct from their influence on the preference parameters, A specific functional form for individual preferences was used to derive closed-form analytical expressions for willingness-to-pay and willingness- to-accept that allow systematic deviations in individual responses to be explicitly modeled by providing a structural interpretation of the error term. Promising results are obtained for both open-ended and dichotomous choice data using three CV data sets.
Ebert, U. (1998) “Evaluation of nonmarket goods: Recovering unconditional preferences,” American Journal of Agricultural Economics, 80 (2), 241-254.
A new approach is proposed for the evaluation of nonmarket goods, starting from a complete or incomplete (conditional) demand system for market goods which is observable and depends on nonmarket goods. This information is not sufficient to recover the underlying preference ordering of the representative consumer. The central idea is to employ additional marginal willingness to pay functions for the nonmarket goods. Since they can be estimated either together with the demand system or in a separate step they are less arbitrary than the assumptions or hypotheses usually made. If the entire system is (weakly) integrable the underlying ordering and appropriate welfare measures can be derived. In this article I investigate the relationship between conditional and unconditional demand systems, present sufficient conditions for (weak) integrability, and demonstrate the practicability of the procedure proposed by means of three examples.
Hite, D. (1998) “Information and bargaining in markets for environmental quality,” Land Economics, 74 (3), 303-316.
This paper explores the role of information on residential real estate prices. Housing transactions from 1990 formed the sample frame for surveying home buyers on their knowledge of local environmental disamenities, both at the time their homes were purchased, and when the survey was conducted. Of particular interest was home buyers' knowledge of nearby landfill sites. Because of clustering of survey responses, a sample selection model that combines transaction data with 1990 census micro delta was used. The results suggest that home buyers are poorly informed about disamenities, and that those who are informed bid down the price of a home.
Huang, J. C., T. C. Haab, and J. C. Whitehead (1997) “Willingness to pay for quality improvements: Should revealed and stated preference data be combined?,” Journal of Environmental Economics and Management, 34 (3), 240-255.
In this article we propose theoretically consistent welfare measurement of use and nonuse values for an improvement in environmental duality with revealed and stated preference data. An analytical model based on the comparative static analysis of the variation function that describes the relationship between recreation demand and dichotomous choice contingent valuation models is estimated. Our results show that revealed and stated data should not be combined under the same assumed preference structure unless the two decisions imply the same change in behavior induced by the quality change. In addition, our results indicate scope effects in willingness to pay measures estimated with stated preference data. (C) 1997 Academic Press.
Adamowicz, W. S. J. B. P. L. J. W. M. (1997) “Perceptions Versus Objective Measures of Environmental-Quality in Combined Revealed and Stated Preference Models of Environmental Valuation,” : Journal Of Environmental Economics And Management, 32 (1), 65-84.
Jones, C. A. P. K. A. (1997) “Restoration-Based Compensation Measures in Natural-Resource Liability Statutes,” : Contemporary Economic Policy, 15 (4), 111-122.
Loomis, J. B. (1997) “Panel Estimators to Combine Revealed and Stated Preference Dichotomous Choice Data,” : Journal Of Agricultural And Resource Economics, 22 (2), 233-245.
Kling, C. L. (1997) “The Gains from Combining Travel Cost and Contingent Valuation Data to Value Nonmarket Goods,” : Land Economics, 73 (3), 428-439.
Layman, R. C. B. J. R. C. K. R. (1996) “Economic Valuation of the Chinook Salmon Sport Fishery of the Gulkana River, Alaska, Under Current and Alternate Management Plans,” : Land Economics, 72 (1), 113-128.
Cameron, T. A. S. W. D. R. S. E. M. J. K. S. (1996) “Using Actual and Contingent Behavior Data with Differing Levels of Time Aggregation to Model Recreation Demand,” : Journal Of Agricultural And Resource Economics, 21 (1), 130-149.
Alberini, A. H. W. M. V. (1996) “Estimating an Emissions Supply Function from Accelerated Vehicle Retirement Programs,” : Review Of Economics And Statistics, 78 (2), 251-265.
Niklitschek, M. L. J. (1996) “Combining Intended Demand and Yes/No Responses in the Estimation of Contingent Valuation Models,” : Journal Of Environmental Economics And Management, 31 (3), 387-402.
Blomquist, G. C. W. J. C. (1995) “Existence Value, Contingent Valuation, and Natural-Resources Damages Assessment,” : Growth And Change, 26 (4), 573-589.
Whitehead, J. C. (1995) “Willingness-to-Pay for Quality Improvements - Comparative Statics and Interpretation of Contingent Valuation Results,” : Land Economics, 71 (2), 207-215.
Lohr, L. P. T. A. (1995) “Utility-Consistent Discrete-Continuous Choices in Soil Conservation,” : Land Economics, 71 (4), 474-490.
Alberini, A. H. W. M. V. (1995) “Determinants of Participation in Accelerated Vehicle-Retirement Programs,” : Rand Journal Of Economics, 26 (1), 93-112.
Adamowicz, W. L. J. W. M. (1994) “Combining Revealed and Stated Preference Methods for Valuing Environmental Amenities,” : Journal Of Environmental Economics And Management, 26 (3), 271-292.
Jakus, P. M. (1994) “Averting Behavior in the Presence of Public Spillovers - Household Control of Nuisance Pests,” : Land Economics, 70 (3), 273-285.
Smith, V. K. (1993) “Nonmarket Valuation of Environmental Resources - An Interpretive Appraisal,” : Land Economics, 69 (1), 1-26.
Larson, D.M. (1992) “Can Nonuse Value Be Measured from Observable Behavior,” : American Journal of Agricultural Economics,”74 (5), 1114-1120.
Cameron, T. A. (1992) “Nonuser Resource Values,” : American Journal Of Agricultural Economics, 74 (5), 1133-1137.